#TrumpTariffs

The BRICS 2025 Summit has sparked intense debate with Russian President Vladimir Putin's bold declaration that "globalization is over" and it's time to trade in local currencies, directly challenging the US dollar's dominance. Putin's statement is backed by data, with 90% of Russia's BRICS trade already being conducted without the USD, and the bloc is now exploring ways to make payments in local currencies smoother and faster. This move is part of a broader effort to create an independent system from the US-dominated financial sector ¹.

## Key Developments

- *BRICS Clear System*: A new system aimed at bypassing the SWIFT network, which could reduce dependence on the US dollar.

- *Local Currency Trade*: BRICS nations are increasingly using national currencies for trade, with Putin emphasizing the growth of local currency transactions.

- *Digital Currency and Payment Systems*: Discussions around a potential BRICS digital currency and blockchain-based payment network could revolutionize cross-border transactions ² ¹.

## Implications for Crypto

The de-dollarization trend has significant implications for the crypto space, particularly for:

- *Stablecoins*: These could become more prominent as a means of settling transactions without relying on the USD.

- *Central Bank Digital Currencies (CBDCs)*: Countries may accelerate development of their own CBDCs to participate in the new financial system.

- *Decentralized Payment Systems*: Web3 technologies might emerge as a neutral ground for global finance, providing an alternative to traditional systems.

## Challenges and Uncertainties

While the BRICS bloc's efforts to reduce dependence on the USD are gaining momentum, there are challenges to overcome, including:

- *Internal Divisions*: BRICS nations may have differing opinions on the direction of the new financial system.

- *US Response*: Trump's warning of 10% tariffs on countries supporting the anti-dollar shift could escalate tensions and impact global trade.